2 Given the following: You are planning a new business. You project the following 4 first-year income statement: 6 Revenue 7 COGS 8 Gross profit 9 Other variable expenses 10 Depreciation 11 Other fixed expenses 12 Net profit 13 You project that you will need $200,000 in capital assets (leasehold improvements and equipment) to start the business. $ 1,980,000 $ 960,000 $ 1,020,000 $ 250,000 $ 90,000 $ 600,000 $ 80,000 14 $200,000 15 You will carry inventory, and you project that annual inventory turnover (Annual COGS/Average Inventory) will 16 be 8 $120,000 17 All sales will be on credit, and you project that Days Sales 18 Outstanding will be 40.0. $220,000 19 20 21 Please calculate (4 points): 22 Hint: Use 360 days for calculations, not 365 If you plan to cover 7 months of (other) fixed expenses, how much funding do you need to start this business 23 (regardless of source of funding)? 24